The £213m fund, which is co-managed by Peter Saacke, has seen its Morningstar OBSR Analyst Rating cut from silver to bronze in the move.
“While we believe the fund is still likely to achieve its performance objective over a full market cycle, volatility in returns has been extremely high in recent years,” the fund rating agency says.
“The use of Artemis’ quantitative model, SmartGARP, has not resulted in consistent returns particularly when faced with multiple market inflection points.”
SmartGARP is considered to be a successful model over longer time-frames, the review adds, although a bronze rating is a “better reflection” of the fund’s risk-reward profile.
The Artemis European Growth fund has outperformed FTSE Europe ex UK benchmark since launch in March 2001, growing 72.7% against the index’s 41%.
However the most recent factsheeet, dated February 29, shows the fund has underperformed over one, three and five years.